Former UConn star and NBA player Tate George charged in Ponzi scheme

Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, leaves federal court in Newark, N.J., Friday, Sept. 23, 2011. George, of Newark, surrendered to federal authorities to face charges stemming from what prosecutors said was a Ponzi scheme. (AP Photo/The Record of Bergen County, Leslie Barbaro)

sp-all star game-ag-8/12Tate George drives during the Jim Calhoun Charity All-Star Game at the Mohegan Sun on 8/12/2006.Photo by Arnold Gold AG0181D

Tate George, who hit perhaps the most memorable shot in UConn basketball history, surrendered to authorities in New Jersey Friday for allegedly engineering a fraud scheme on investors worth more than $2 million.

According to New Jersey U.S. Attorney Paul J. Fishman, George surrendered to special agents of the FBI and postal inspectors of the U.S. Postal Inspection Service in his hometown of Newark. He has been charged with one count of wire fraud and appeared before U.S. Magistrate Judge Patty Shwartz Friday in Newark federal court.

According to the criminal complaint unsealed Friday, George held himself out as CEO of The George Group, claiming to have more than $500 million in assets under management. He pitched prospective investors, including several former professional athletes, to invest with the firm under the auspices of purchasing and developing real estate projects in Connecticut, Florida, Illinois and New Jersey.

Apparently, more than $2 million was invested in The George Group between 2005 and March 2011, and George allegedly used the money to pay existing investors in Ponzi scheme fashion. He also allegedly used some of the money for home improvement projects, meals at restaurants, clothing and gas.

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If convicted, George faces a maximum penalty of 20 years in prison and a $250,000 fine.

Wearing a gray-green suit and with his wrists handcuffed in front of him at his first appearance Friday in Newark federal court, George spoke briefly to say he understood his rights. Bail was set at $250,000, secured by a property bond signed by George's mother, who was in court with other family members.

George, 43, played four seasons at UConn, from 1986-1990, averaging 9.7 points per game for his career. He will forever be remembered for catching a full-court pass from Scott Burrell and hitting a last-second shot to best Clemson in an NCAA tournament Sweet Sixteen game in 1990, the Huskies' "Dream Season."

UConn assistant coach Glen Miller was an assistant on that 1990 team, and while he didn't know enough about George's current situation to offer a comment on it, he has always admired George.

"He was a terrific person when he was here, I thoroughly enjoyed coaching him," Miller said. "He was a good leader, a good representative of our program, the university and his family when he was here, with my time spent with him. I haven't had consistent contact with him over the years, but I've always enjoyed Tate."

George was a first-round draft pick (22nd overall) in 1990 by the New Jersey Nets. He played four NBA seasons with the Nets and Milwaukee Bucks, averaging 4.2 points per game.

Follow David Borges on Twitter @DaveBorges. To receive breaking sports news first, simply text the word "nhsports" to 22700. Standard msg+data rates may apply. The Associated Press also contributed to this report.